IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


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III  22 

^  hi   lllllio 


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Photographic 

Sciences 
Corporation 


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23  WEST  MAIN  STREET 

WEBSTER,  NY.  MS80 

(716)  872-4503 


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6^^ 


CIHM/ICMH 

Microfiche 

Series. 


CIHM/ICMH 
Collection  de 
microfiches. 


Canadien  Institute  for  Historical  Microreproductions  Instltut  canadien  de  microreproductlons  historiques 

1980 


Technical  and  Bibliographic  Notes/Notes  techniques  et  bibliographiques 


The  Institute  has  attempted  to  obtain  the  best 
original  copy  available  for  filming.  Features  of  this 
copy  which  may  be  bibliographically  unique, 
which  may  alter  any  of  the  images  in  the 
reproduction,  or  which  may  significantly  change 
the  usual  method  of  filming,  are  checked  below. 


D 


D 
D 
D 
D 
D 
D 

D 


Coloured  covers/ 
Couverture  de  couleur 

Covers  damaged/ 


I I    Couverture  endommagde 

n 


^ 


Covers  restored  and/or  laminated/ 
Couverture  restaur^e  et/ou  pelliculde 

Cover  title  missing/ 

Le  titre  de  couverture  manque 

Coloured  maps/ 

Cartes  g4ographiques  en  couleur 

Coloured  ink  (i.e.  other  than  blue  or  black)/ 
Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 

Coloured  plates  and/or  illustrations/ 
Planches  et/ou  illustrations  en  couleur 

Bound  with  other  material/ 
Reli6  avec  d'autres  documents 

Tight  binding  may  cause  shadows  or  distortion 
along  interior  margin/ 

La  reliure  serr^e  peut  causer  de  I'ombre  ou  de  la 
distortion  le  long  de  la  marge  int6rieure 

Blank  leaves  added  during  restoration  may 
appear  within  the  text.  Whenever  possible,  these 
have  been  omitted  from  filming/ 
II  se  peut  que  certaines  pages  blanches  ajoutdes 
iors  d'une  restauration  apparaissent  dans  le  texte, 
mais,  lorsque  cela  6tait  possible,  ces  pages  n'ont 
pas  6X6  film^es. 

Additional  comments:/ 
Commentaires  suppl^menteires; 


L'Institut  a  microfilm^  le  meilleur  exemplaire 
qu'il  lui  a  6t6  possible  de  se  procurer.  Les  details 
de  cet  exemplaire  qui  sont  peut-dtre  uniques  du 
point  de  vue  bibliographique,  qui  peuvent  modifier 
une  image  reproduite,  ou  qui  peuvent  exiger  une 
modification  dans  la  m^thode  normale  de  filmage 
sont  indiqu6s  ci-dessous. 


□    Coloured  pages/ 
Pages  de  couleur 

□    Pages  damaged/ 
Pages  endommag^es 

0  Pages  restored  and/or  laminated/ 
Pages  restaurdes  et/ou  pellicul6es 


D 


Pages  discoloured,  stained  or  foxed/ 
Pages  ddcolordes,  tachetdes  ou  piqu^es 


I      I    Pages  detached/ 


Pages  d6tach6es 

Showthrough/ 
Transparence 

Quality  of  prir 

Quality  in^gale  de  I'impression 

Includes  supplementary  materia 
Comprend  du  materiel  supplementaire 

Only  edition  available/ 
Seule  Edition  disponible 


n~y  Showthrough/ 

I      I    Quality  of  print  varies/ 

I      I    Includes  supplementary  material/ 

r~~|    Only  edition  available/ 


D 


Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  refilmed  to 
ensure  the  best  possible  image/ 
Les  pages  totalement  ou  partiellement 
obscurcies  par  un  feuillet  d'errata,  une  pelure, 
etc.,  ont  6t^  filmdes  d  nouveau  de  fapon  d 
obtenir  la  meilleure  image  possible. 


□    This  item  is  filmed  at  the  reduction  ratio  checked  below/ 
Ce  document  ast  film6  au  taux  de  reduction  indiqud  ci-dessous. 

10X  14X  18X  22X 


26X 


30X 


J 


12X 


16X 


20X 


24X 


28X 


32X 


The  copy  filmed  hrre  has  been  reproduf^ed  thanks 
to  the  generosity  of: 

Library  of  the  Public 
Archives  of  Canada 


L'exemplaire  film6  fut  reproduit  grdce  d  la 
g6n6rosit6  de: 

La  bibliothdque  des  Archives 
publiques  du  Canada 


The  -.mages  appearing  here  are  :he  bdst  quality 
possible  considering  the  condition  and  legibility 
of  the  original  copy  and  in  keeping  vi/ith  the 
filming  contract  specifications. 


Les  images  suivantes  ont  6X6  reproduites  avec  le 
plus  grand  soin,  compte  tenu  de  la  condition  et 
de  la  nettetd  de  l'exemplaire  film6,  et  en 
conformity  avec  les  conditions  du  contrat  de 
filmage. 


Original  copies  in  printed  paper  covers  are  filmed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  illustrated  impres- 
sion, or  the  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrate)'  impression. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  -^'  (meaning  "CON- 
TINUED"), or  the  symbol  V  (meaning  "END"), 
whichever  applies. 


Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  imprimde  sont  film6s  en  commenpant 
par  le  premier  plat  et  en  terminant  soit  par  la 
dernidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illu»tration,  soit  par  le  second 
plat,  selon  le  cas.  Totis  les  autres  exemplaires 
originaux  sont  filmds  en  commenpant  par  la 
premidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration  et  en  terminant  par 
la  dernidre  page  qui  comporte  une  telle 
empreinte. 

Un  des  symboles  suivants  apparaitra  sur  la 
dernidre  image  de  cheque  microfiche,  selon  le 
cas:  re  symbole  ^»-  signifie  "A  SUIVRE",  le 
symbole  V  signifie  "FIN". 


Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
film^s  6  des  taux  do  reduction  diffdrents. 
Lorsque  le  document  est  trop  grand  pour  dtre 
reproduit  en  un  seul  clichd,  il  est  filmd  6  partir 
de  Tangle  sup^rieur  gauche,  de  gauche  6  droite, 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  ndcessaire.  Les  diagrammes  suivants 
illustrent  la  m6thode. 


1 

2 

3 

32X 


1 

2 

3 

4 

5 

6 

■  i"^: ".  ""  T  1 


Commercial  Uuion  Trith  Canada. 


SPEECH 


HON.     PvOBEirr     R.     HITT, 

OP   ILLINOIS, 

In  the  House  of  EErKESENTATivES, 

/V/(/((.V,  Maif.h  1.  1889. 
On  the  joint  resolution  (II.  Hes.  12'J)  to  promote  commercial  union  witli  Canad*, 

Mr.  HITT  said: 

Mr.  SpkakeR:  This  joint  resolution,  for  calling  up  which  I  desire  to 
Ihank  the  gentleman  Iroiu  iowti,  to  promote  commercial  union  with 
CantKla,  is  a  timely  and  practical  response,  in  liberal  spirit  and  lull  re- 
gard of  the  dignity  and  independence  of  all,  to  a  widespread  and  ex- 
tending movement  now  going  forward  in  the  Dominion,  friendly  to  ua 
in  tendency  and  aiming  at  larger  and  freer  intercourse.  It  is  true  the 
present  administration  of  the  Dominion  is  Tory  and  hostile  to  commer- 
cial union  with  us.  Sir  John  McDonald,  the  prim-?  minister  and  real 
ruler,  desires  to  bind  Canada  as  closely  in  trade  as  in  politital  connec- 
tion with  Great  Hritiiiu;  and  every  appliance  of  power  and  api)«al  to 
.■sentiment  have  been  used  against  this  movement.  Yet  the  muterial 
reasons,  the  businc  -^  advantages  to  every  one,  are  so  evident  that  it 
goes  on.  la  the  CV  dian  Parliament  last  spring  sixty-seven  members, 
representing  districi-  that  contain  more  than  half  the  wealth  ol  Canada, 
voted  lor  unrestricted  reciprocity.  The  bye-elections  since  then  show 
the  increasing  strength  ot  the  movement.  The  executive  oflScers  and 
prime  ministers  of  the  provinces,  something  like  our  States,  have  de- 
clared for  it.  • 

It  is  time  that  we  give  some  assurance  that  such  a  powerful  move- 
ment of  such  immense  conseijuences  interests  our  people,  and  will  be 
coo'ldeied  in  as  liberal  and  practical  a  spirit  on  our  side. 

Since  this  resolution  was  introduced  by  me  one  year  ago,  March  5, 
it  has  been  mwt  carefully,  scrntiniziugly  discussed,  and  almost  univers- 
ii  I  !y  approved  by  the  press  ot  the  country.  The  Committee  on  P'oreign 
Artiiirs,  after  mudi  consideration,  reported  it  to  the  House  without  a 
dis.sentiiig  voice,  rei«nuneuding  its  adoption.  Itprovides,  infew  words: 
Tliat  whenever  It  shnll  be  <tnl.v  certilled  to  tlie  Presidentof  the  United  States 
thiit  the.  (joveninieiit  of  ttie  Domhiitm  ofCiinada  has  dcelare'I  a  desire  to  cstal)- 
HmIi  oomn>ereial  union  witli  the  United  Stales,  linviiii;  a  uniform  revenue  sys- 
tem, like  internal  taxesto  l)e  eolleete<l,  aiid  liice  import  duticn  to  lie  impoaedon 
articles  brou),;ht  into  cither  country  from  other  natidus,  with  no  duties  upon 
trade  between  the  Unitc-.l  Elates  and  Canada,  he  shall  appoint  three  commis- 
sioners to  meet  those  who  may  he  iikcwisedesiKnatcd  to  represent  theCiovern- 
mc'itof  Cana<ift,  to  prepare  a  plan  lor  the  assimilation  of  the  import  duliet) and 
internal-revenue  taxes  of  tliti  two  countries,  and  an  equitable  division  of  ro- 
<!eipts,  in  Acommerciat  union ;  and  naidcommlHsionerBshall  report  to  the  Presi- 
<l«nt,  who  shall  lay  the  report  Ijcfore  CouKrcsa. 


i.'  't 


2 

What  is  commercial  union  with  Canada?  It  means  aa  set  out  ii> 
this  resolution  the  adoption  by  both  countries  of  iirecisely  the  same 
tariff  of  duties,  or  taxea  to  be  levied  upon  goods  coming  Irora  abntad, 
abolishing  altogether  our  line  of  custom-houses  on  the  north  by  which 
■we  collect  tiiritl' duties  on  goods  coming  from  Canada,  abolishing  their 
custom-houses  along  the  same  line  by  which  they  collect  duties  upon 
goods  we  send  into  Catiada,  and  leaving  intercourse  as  unrestrifited  l>e- 
tween  this  country  and  Canada  as  it  is  between  the  States.  The  line 
of  custom-houses  would  follow  the  sea  and  include  both  countries. 
The  internal-revenue  systems  of  taxes  on  liciuors  and  tobacco  in  the 
two  countiies  would  also  have  to  be  madt-  un  f  )rm  in  l>()th.  The  pro- 
ceeds of  taxation  thus  collected  would  be  e((uitai>ly  divided,  aud  the 
laircst  way  would  seem  to  be  in  proportion  to  population. 

The  Canadian  tariff  now  levies  duties  upon  goods  coming  into  Canada 
from  all  sources,  including  England.  It  is  not  quite  as  high  in  the 
rates  of  duties  as  the  tarilf  of  the  United  States;  but  it  is,  like  the 
taritr  of  the  United  States,  a  protective  tariff",  framed  for  the  express 
purpose  of  fostering  Canadian  industries.  If  Canada  entered  into  com- 
mercial union 'vith  the  United  States  its  taritf,  then  the  same  as  our 
own,  would  uo  longer  be  laid  upon  goods  sent  from  the  United  States 
into  Canada,  but  would  fall  upon  everything  coming  from  England 
and  other  countries.  To  illustrate:  In  the  year  1887  we  sold  toCanada. 
144,802,732  of  goods.  Of  this  amount  $.S(),578,3H2  consisted  of  articles 
on  which  they  levied  duties,  the  average  rate  being  2;i.7(>  percent., 
amounting  to  $7,265, 135.73.  This  burden  of  over  seven  millions  of  tax 
imposed  ujwn  goods  we  sent  to  Canada  to  sell  would  be  swept  away. 

England,  competing  with  us  for  the  Canadian  market,  sold  nearly 
the  sjime  quantity  of  goods  in  Canada  during  the  year,  and  as  they 
were  manufactures  of  a  higher  grade,  ci)st,  and  process,  they  fell  under 
the  provisions  of  the  Canadian  tariff  imposing  still  higher  rates  of  duty 
than  those  imposed  upon  the  imports  from  the  United  States. 

The  advantages  which  would  accrue  to  us  from  commercial  union 
can  readily  be  seen.  If  in  one  hundred  millions  of  imports  purchased 
by  Canada  during  the  year  the  United  States  were  able  to  sell  forty-live 
millions  in  that  market  in  spite  of  the  duties  imposed  upon  them,  com- 
peting with  the  Enelish,  who  sold  goods  of  nearly  similar  value,  how 
much  great«r  share  of  this  hundred  millions  of  trade  would  our  people 
enjoy  if  they  could  send  their  manufactures  and  other  goods  into  Can- 
ada as  freely  as  they  now  send  them  from  one  State  to  another,  while 
the  English  manufacturers  and  merchants,  competitors  with  ours,  would 
have  to  submit  to  the  tariff  when  they  landed,  amounting  to  from  25 
to  40  per  cent.  ? 

Is  it  not  evident  that  the  sales  we  would  make  to  Canada  would 
speedily  leap  to  seventy-live  or  perhaps  a  hundred  millions  of  dollars 
per  annum  ?  The  advantages  which  would  be  reaped  by  Canadians  — 
farmers,  artisans,  and  mechanics — from  the  enormous  impulse  given 
to  business  and  to  every  element  of  prosperity  are  for  them  to  consider. 
I  am  now  discussing  the  proposition  only  from  the  jwint  of  view  of 
the  people  of  the  United  States.  In  all  trade  arrangements  which  have 
been  made  by  our  stAt«smen  heretofore  with  Canada — the  reciprocity 
treaty  of  1 854  and  several  subsequent  attempts  with  the  same  purpose — 
the  result  has  been  onesided.  ket:ipiocity  was  provided  for  natural 
products  which  the  agriculturists  of  Quiada  desired  to  sell  to  us,  but 
ours  could  never  sell  to  them,  as  that  is  not  a  market  for  Rgricoltural 
protlucts.  They  only  sell  and  send  away.  But  good  care  has  been 
taken  to  never  admit  the  goods  produced  by  our  manufacturers  to  the 


great  market  of  Cannda.  Tliat  market,  if  opened  to  n«  by  rommerclal 
union  on  terms  of  peifeit  Ireedoni,  would  l)e  to  the  husineas  intereHta 
of  thin  coniitry  of  enonnons  value;  hut  our  people  will  iievei  agtiin  con- 
sent to  any  partial  or  one-sided arranucment  by  whiih  ('anadiannsliall 
^njoyour  market  lor  their  products,  while  our  niauufacturerashall  he  to 
a  great  extent  excluded  from  Canada,  to  be  still  supplied  from  Kuglaud. 

The  advaiitajt*  8  we  give  to  Canada  should  be  for  advantages  received, 
und  1  ha^•e  tin  nfore  opposed  the  policy  which  would  strike  olf  dnties 
amounting  tc  $1,800,000  per  annum  on  Canadian  pnxlncts  sent  to  this 
country  without  any  couctts.sion  being  made  on  their  part  in  striking 
off  duties  U]xin  goods  we  send  to  Canad.'i.  Jf  s\u'h  an  improvident 
policy  is  pursued,  all  uuilive  on  the  part  of  Canadians  to  give  us  any 
jidvantage  whatever  in  their  markets  will  be  taken  away.  English 
bnsinc'ss  influence  and  English  capital  will  remain  domiuiint  in  Canada 
while  our  laws  are  being  changed  to  conform  to  their  interests  and 
•wishes.  When  they  permit  our  iron  and  steel,  cotton  iind  woolen 
manufactures  free  entry  into  their  market  it  will  be  time  to  talk  of  free 
lumber,  free  llsh,  and  free  salt,  but  until  then  no  jot  or  tittle  of  our 
tarilTupon  imports  Irom  Canada  should  be  abated. 

The  assimilation  of  the  Canadian  taritf  to  our  own  would  not  he  a 
violent  change.  An  elaborate  computation  made  at  my  request  by 
the  Bureau  of  Statistics,  issued  Alay  ;jl,  1H88,  giving  the  rates  of  duty 
imposed  by  Canada  upon  each  article  making  up  the  $;$(), 000, 000  of 
<luti:ible  articles  which  were  sold  to  that  country  in  the  last  year,  av- 
eragid  •2',i.'H)  jier  cent.  I'heiluty  estimated  under  our  own  tariff  which 
would  have  been  «  'ileeted  had  it  been  applied  would  have  amounted 
to  2fi.4!)  per  cent.,  lieing  a  difference  of  only  2.7:5  per  cent.  The  dif- 
ference between  our  internal-revenue  taxation' which  like  that  of  Can- 
ada falls  upon  spirits,  beer,  ami  tobac<!o)  and  that  of  Canada  is  also 
not  wide,  and  like  the  slijjiht  dilference  in  the  respective  tariffs  (;ould 
be  as.siniilated  into  one  revenue  system  without  any  violent  change. 

ThiMlivisiuu  of  receipts  from  tarilfaud  internal  revenvie,  if  based  upon 
the  respective  populations,  would  make  scarce  any  change  at  all.  We 
collected  liust  year  by  taritf  and  internal  revenue  together  $(>."0  per 
capita  of  our  population,  while  Canada  collected  from  tariff  and  excise 
$6.(15.  Let  me  give  the  precise  facts  in  detail  from  the  otticial  reports. 
During  the  year  ending  .hine  HO,  1887,  our  Government  collected  by 
the  tarifTSJn.'iHO.H.'Hi,  and  from  internal  revenue  $1  I8,H2:{,391,  mak- 
ing altogether  $:5.".f).  110,'28V  from  a  population,  according  to  the  census 
of  IHSl,  of  $0,15r>,78;{  persons,  making  $(1.70  from  every  person  in  the 
United  States. 

During  tiie  same  year  the  Canadian  Covernment  colle<!ted  by  its  tariff 
?22, 378,801,  and  from  internal  revenue,  or  excise  as  they  term  it,  $(>,- 
:{08,20l,  making  together  ^^8,6^7.00^  which  was  collected  from  the 
population  of  Canada,  that  according  to  the  census  of  1881  numbered 
4,;fe'l.810,  or  a  fraction  above  $(i.(iO  from  every  person.  As  the  amounta 
collected  from  the  respective  peoples  are  almost  exactly  identical  per 
taipita,  diirering  by  a  decimal  scarcely  appreciable,  would  it  not  he  the 
simplest  and  the  fairest  way  when  the  revenues  are  to  be  all  collected 
under  a  common  tariff  and  a  unilbrm  internal-revenue  system  to  dirtde 
the  ))roceeds  by  population?  This  would  leave  the  revenues  of  each 
(iovernment  derived  from  tarilT  and  internal  revenue  exactly  as  they 
.stand  now,  and  each  treasury  would  receive  next  year  from  these 
.-ourte.s  the  same  sums  proportionally  for  the  support  of  the  Govem- 
meuls  that  they  received  in  1887.  I  do  not  mention  receipts  from 
other  sources,  such  as  public  lands,  postotKce,  public  works,  etc.    Each 


Government  would  mauage  them  to  suit  itself.  Undoubtedly  tlie  re- 
ceipts from  duties  atCauadian  purta  might  change,  because  the  market 
of  Canada  being  largely  sapplied  with  goods  trum  the  United  iStaien, 
the  large  sums  they  now  collect  upon  importations  from  across  the  sea 
might  be  decreasetl,  but  the  equitable  division  of  revenue  by  popula- 
tion would  maintain  the  Canadian  Government  in  undiminished  linau- 
cial  resources. 

The  Dominion  of  Canada,  vast  as  it  is  in  territorial  extent,  contains 
but  a  long  string  of  feebly  connected  groups  of  population  upon  the 
southern  border.  The  power  and  value  of  a  country  are  measured  by  its 
strength  in  men  and  by  their  activity,  not  by  square  nnles  within  its 
borders,  whether  they  be  capable  of  high  cultivation  or  wide  stretches 
of  icy  desolation.  The  maritime  provinces,  containing  870, 696  people, 
are  separated  by  an  uninhabited  waste  of  hundreds  of  miles  and  by 
the  wedge-like  State  of  Maine  from  the  central  provinces,  Qnebec  and 
Ontario,  containing  3,282,255.  Then  comes  the  long,  rocky  journey 
around  the  lakes  to  Manitoba,  which  has  probably  a  hundred  thousanil 
people.  They  again  are  separated  by  more  than  a  thousand  miles  oit 
the  west  by  plains  and  mountains  from  British  Columbia.  Eiich  oi 
these  groups  of  population  lies  close  upon  the  people  of  the  United 
States,  and  enormous  effort  by  great  expenditure  has  been  made  to  in- 
troduce iiiterprovincial  trade  over  Qovernment  railroads  and  subsidize  I 
roads,  but  in  vain. 

The  laws  of  nature  and  the  laws  of  trade  are  against  it,  and  the 
$200,000,000  spent  for  this  purpose  could  not  accomplish  it.  The  prov- 
inces had  almost  the  same  things  to  sell.  How  could  they  sell  them 
to  each  other?  Each  one  of  them  is  interested  in  every  way  in  the 
affairs,  in  the  markets,  in  the  business  of  the  great  near  neighl)or  on 
the  south,  to  whom  they  wish  to  sell,  from  whom  they  wish  to  buy, 
rather  than  from  any  other  province,  the  nearest  hundreds  of  miles 
sway.  The  products  of  Canada,  from  Qnebec  to  the  mountains,  are  st> 
nearly  the  same  that  they  can  not  sell  to  each  other  nor  supply  each 
other's  wants.  They  export  agricultural  products  and  wish  to  pur- 
cha.se  their  merchandise  from  abroad,  either  from  England  or  the  United 
States.  The  natural  lines  of  commerce  are  North  and  South,  each 
supplying  what  the  other  lacks,  rather  than  East  and  West  along  lines 
of  similar  products. 

Nature  herself  sends  the  Canadians  to  our  market,  so  near  at  hand, 
to  purchase  what  they  need,  to  sell  what  they  have  to  disposes  of.  In 
spite  of  the  tremendous  influences  against  it,  the  spirit  of  their  govern- 
ment, the  dominant  social  forces  there,  and  the  invested  Etaglish  capi- 
tal, all  endeavoring  to  constrain  the  people  to  trade  with  England,  halt 
their  commerce  is  still  with  us;  and  in  spite  of  the  high  duties  levied 
by  them  upon  our  goods  and  by  us  upon  their  products,  we  sold  them 
in  1886  over  $50,000,(100,  largely  of  manufactured  goods.  Can  there 
be  any  question  that  it  would  be  in  the  interest  of  our  people  to  have 
free  admission  to  that  market  for  the  sale  of  American  goods,  to  have  the 
preference,  in  fact,  in  that  market  by  the  escublishmeut  of  the  tariff 
against  importations  from  ony  other  route? 

It  is  said  that  the  price  of  labor  in  Canada  is  now  lower  than  in  the- 
United  States,  and  we  would  have  cause  to  dread  the  free  admission  ot 
Canadian  products  incompetition  with  our  own.  That  criticism  would 
appeal  to  me  as  an  American  and  as  a  protectionist  if  the  price  of  labor 
in  Canada  was  made  lower  than  here  l)ec8use  of  the  overpopulation  of 
the  country.  If  there  were  scores  of  millions  there,  as  in  P^nrope,  con- 
tending for  existence  and  pressing  for  employment,  then  to  let  in  thft 


•   6 


; 


•  6 


I 


flood  of  their  producta  would  he  nnwine.  But,  in  fuct,  population  in 
Oinuda  in  HpiiiHe,  and  ihe  reason  the  price  ot  lahor  in  Caiuidn  in  low  in 
not  hetiiust!  there  uie  millions  seeking  em]iloynient  and  crowding  e^icli 
«)lher,  hut  heeuuse  hnsiness  there  in  atuanant,  nioney  is  wiirce,  and 
jjrotitH  are  low.  Thty  under  for  want  ol  u  market,  for  wantof  civpiUd; 
epterpriNe  not  hein;:  t^ntonruf^ed,  the  price  ol  Inhor  in  in  some  places 
lower  than  here.  Those  who  lived  in  the  Western  States  in  theeitrlier 
daya  when  we  liad  no  acceas  to  markets  can  reuieniher  a  similar  Ktnte 
of  things,  when  Hhnndnnceof  land  and  raw  material  and  a  va^ue  splen- 
did future  in  sijjht  were  all  inef'ectuul  to  hring  good  prices  for  any- 
thing. Ijihor  wiw  ill  paid,  wugeu  were  low,  money  wa«  scarce,  husi- 
uesH  was  dull.  Hut  when  the  railroads  were  opened  and  the  market 
came  to  our  Western  farmers,  an  er.i  of  gixnl  prices,  ((enernl  prosperity, 
and  rapid,  steady  growth  ensued,  as  it  would  to  the  vast  depressed  ag- 
ricultural regions  of  Northwestern  Canada  if  a  market  were  afiordeti 
them. 

The  prosperity  of  our  Western  farmers  did  no  injnry  to  New  Eng- 
land or  any  part  of  the  East,  It  increased  the  prosperity  of  all,  af- 
torded  them  ahundant  supplies,  gave  to  them  a  wider  market  for  the 
product**  they  had  to  sell,  and  promoted  the  growth  of  hoth  the  East 
and  the  West  with  immense  strides.  So  the  opening  of  the  great  ag- 
ricultural regions  of  Canada,  now  sparsely  peopled  a.id  depres-sed  in 
hu.siiiess,  will  widen  our  market,  give  new  regions  to  American  enter- 
prise and  profitahle  investment,  and  heneflt  all  parties.  The  price  of 
labor  in  Canada  as  soon  as  activity  and  prosperity  touched  those  lands 
would  ri.se  as  in  the  Western  States.  This  is  not  a  question  of  admit- 
ting the  millions  of  Fluropean  jwuper  laborers  to  our  n)arket  nor  any- 
thing akin  to  it.  I  have  liiith  that  the  capital  and  lalxir  of  the  United 
States,  sixty  millions  strong,  can  easily  take  care  of  themselves  in  the 
opening  of  the  market  with  five  millions  of  Canadians. 

Would  the  adoption  of  a  common  tiritf  along  the  seacoa^t  and  unre- 
stricted intercourse  over  the  inland  Iwrder  lead  to  fraud  ?  Would  goods 
be  admitted  by  Canadian  custom-hou.se  oflicials  without  paying  duty 
and  thus  evade  our  tariff?  Would  it  be  safe  to  allow  a  part  of  our 
custom-houses,  those  along  the  Canadian  l)order,  to  be  beyond  the  con- 
trol and  jurisdiction  of  onr  Treiisury  Department?  I  answer,  what 
ground  is  there  to  apprehend  fiand  ?  The  Canadian  custom-house  sys- 
tem bears  a  g<H>d  name  and  is  well  administere<i.  I  know  it  is  aid  that 
in  the  countries  on  the  south  of  us  there  is  much  looseness  in  custom- 
house sj'stems,  and  in  any  such  arrangements  with  them  much  precau- 
tion might  be  necessary;  but  there  is  nothing  in  the  history  of  Canadian 
administration  to  warrant  a  di.^trnst  of  their  officials  by  us  any  nioro 
than  they  might  distrust  ours.  However,  there  is  no  practical  diffi- 
culty in  having  oUiccM  of  the  United  Stiites  revenue  service  in  f'eir 
ports  with  i unction  of  inspection  to  prevent  losses  to  revenue,  o  in- 
jury to  our  menthanls.  That  is  done  today  by  onr  Treasury  Depart- 
ment, which  has  it.s  oHicers  at  Vancouver,  in  Itritish  Columbia,  and  in 
Ontario,  and  in  (^uel)ec,  and  elsewhere  throughout  Canada,  done  with 
the  permission  (»fthat(TOvernmeut,  to  protectour  custom-house  revenue 
from  losses  in  the  tran.sit  trade. 

Commercial  union  is  in  substance  a  proposition  to  extend  our  tariff" 
system,  moditied  reasonably  upon  consnltation,  over  Canada;  to  remove 
the  custom- hou.ses  ol  both  governments  Irom  the  frontier  and  put  them 
along  the  line  of  the  sea;  to  have  our  protective  system  include  the 
continent  Irom  the  Gulf  of  Mexico  north;  to  give  to  our  manufactures 
and  other  i)roducts  as  free  access  to  the  markets  of  Canada  &s  they  have 


throughout  the  Stntes,  and  allow  the  Caimdiana  (o  xell  and  buy  here 
as  freely.  I  udoubte<lly  they,  in  being  Hul^jected  to  the  same  tartft" 
with  us,  would  in  all  t'airneHH  be  couHulted  um  to  its  provisions;  but  we, 
sixty  millions,  would  in  all  fairnens  generally  have  tite  prevailing  voice 
in  determining  what  the  rntcH  .iliould  be.  The  tmrlicular  methods  in 
which  <incMti(>na  of  detail  Hhould  be  treated  need  not  now  be  discussed. 
The  conimi(»woner8  contemplated  by  the  resolution  are  for  the  express 
purpose  of  getting  all  the  views  and  all  the  facts  l>eariug  upon  this 
question. 

The  amount  of  our  import  ;  from  Canada  in  moat  of  the  articles  we 
pnrcluute  there  Ih  so  small  compared  with  the  vast  consumption  of  our 
people  that  it  does  not  atfect  the  price  percejuildy.  and  as  Canada  is 
comparatively  depressed  in  business  the  prices  of  artic-les  sold  us  and 
on  which  wo  lay  a  tarill"  are  generally  lower  in  Canadiv  by  just  the 
amount  of  our  tarilT.  This  is  not  the  case  with  all  articles,  but  it  is 
true  in  many  cases,  and  there  the  Canadians  will  get  an  immediate 
bemifit.  And,  on  the  other  hand,  there  would  bo  a  lar/e  absolute  gain 
in  market  range  and  in  prices  for  American  mannlartnred  goods  pur- 
i-haoed  from  us  by  Canada  iu  place  of  purchases  now  made  by  theia  in 
Europe. 

The  business  advantages  on  both  sides  are  so  evident  on  examination 
that  the  more  this  is  discussed  the  stronger  the  movement.  It  is  now 
going  forward  at  such  a  rate  that  before  long  public  opinion  in  Canada 
and  iu  the  United  States  will  be  in  accord  that  new:uid  better  an  ango- 
nients  than  the  present  can  be  made;  and  once  the  people  have  reached 
this  contilusion  they  will  (juickly  find  a  way  of  carrying  it  out. 

Already  the  precise  question— a  common  taritf  and  excise  system — 
is  becoming  familiiir  to  tlie  people,  and  it  is  discuss* d  in  a  friendl,y 
spirit.  We  have  in  the  United  States  perhaps  one  million  Canadians 
born,  and  they  are  excellent  citizens.  There  is  a  friendly  feeling  gen- 
erally. The  recent  discu.ssions  iu  Canada  have  awakened  discussion  here, 
esprcially  on  the  business  aspect.  Less  interest  is  felt  in  annexation, 
for  we  know  our  country  is  now  very  large,  and  there  is  enouKh  to  do 
in  assimilating  the  diverse  elements  we  already  have.  Hut  the  en- 
largement of  trade  and  improved  business  both  north  and  south  of  us 
everybody  welcomes,  becanse  everybody  expects  to  profit  by  them. 

It  is  ea.sy  to  conjure  up  ditticultiesof  detail  that  will  arise  in  arrang- 
ing a  common  tarilV,  but  these  are  (juestions  similar  to  those  we  have 
been  dealing  with  a  century,  and  certainly  they  are  very  slight  com- 
mred  with  the  difficulties  certain  to  arise  in  tlie  future  between  the 
t^o  nations  if  we  continue  the  barrier,  4,000  n»iles  long,  with  parallel 
lines  of  custom-houses  and  fortifications,  between  peoples  almost  ex- 
actly alike  in  business,  in  feelings,  and  in  race.  There  will  be  and 
there  must  be  an  enormous  and  immense  intercourse  consequent  upon 
their  geographical  position  and  the  mutual  business  interests  of  both 
sides;  and  if  vexatious  barriers  are  kept  up,  irritation  and  trouble  must 
constantly  arise. 

Will  it  be  said  that  England  will  not  consent  to  any  arrangement 
which  would  give  a  preference  in  one  of  her  colonies  to  American  goods 
over  British  goods?  Her  Government,  in  a  noted  instance,  did  thia 
very  thing  not  many  years  ago.  In  1874,  when  the  reciprocity  treaty 
was  being  negotiated  by  Minister  Thornton,  the  English  Government 
instructed  him  to  modify  it  at  the  suggestion  of  the  Canadian  ministry 
and  make  such  additions  to  the  list  of  American  goods  to  be  admitted 
free  into  Canada  as  the  Canadians  desired.  Me  did  so,  and  made  outa 
long  list  of  American  articles  to  be  admitted  free  of  duty,  so  long  that 


It  was  almost  free  (nule.  Not  one  of  tlicse  nrliolej*  cominf);  from  Eng- 
land waHtohoiuliiiitted  fretrol  duty.  Thmdianahtol  a  treaty  wiwsent 
to  I^ord  Derby,  wlioaimwcred  that  tlie  wliolti  iiroccediniu;  wax  approved 
and  tlie  KnuliMh  tioveriiineHt  iiNmuted  to  the  arriintrt'inent  admitting 
Ainorican  j{<><>«'8  free  to  u  Itritish  cnlDny,  where  a  taritV  of  "JO  to  40  per 
ceut.  was  to  be  laid  U{)on  thn  s;ime  kind  of  ^oods  coming  fioin  England 
or  any  other  country  than  the  United  HtatcH. 

CommercitU  union  is  not  in  hostility  to  Kn^land.  She  has  no  better 
cnsloiuer  than  the  United  Stat<«.  and  the  entrance  of  Canada  into  our 
coniniereial  s.vsleni  and  onr  business  aetivities  would  stimulate  her 
prosperity  and  make  her  trade  in  ail  directions  more  valuable.  'Hjo 
live  hundred  millions  of  Knnlii<h  capital  invested  in  Canada  would  be 
immediately  enhan(;e<l  in  value  lo  Kufjlish  owners. 

The  irritation  (|uestions  that  have  arisen  between  our  Government 
and  Knjriand  have  nearly  all  orij^inated  in  our  relations  with  Canada, 
and  they  have  often  disturlied  our  vast  business  with  (ireat  Britain 
and  even  endanjicred  peaee.  They  would  be  removed  and  that  jjreat 
trade,  many  hundred  millions  annually,  would  enjoy  assured  perma- 
nent peaee. 

These,  in  brief,  are  some  of  the  practical  business  reasons  in  imme- 
diate view  for  the  step  ])roposed  by  this  resolution.  Every  intelliftent 
and  thoujthttui  mind  will  .see  the  far-rea('hin<j;  ellects  of  comniereial 
union  upon  the  two  peoples  in  the  Iouk  hereafter,  the  security  it  will 
Hive  to  coulinnin>;  peace,  the  wjlution  it  will  afford  at  once  to  all 
the  exasperaiinji  dilltrences  that  have  been  in  dispute  for  generations, 
the  vastly  extended  pros|)erity  itassures  tothe  Enfjlish-speakinit  people 
of  this  continent  dwelling  to;{ether  in  haruKmious  activity,  increasing 
power,  and  unbroken  peace. 

*  *  «  »  «  »  * 

Mr.  IIITT,  from  the  Committee  oa  Foreign  AfTairs,  March  16,  1888, 
submitted  the  following  report  to  accompany  joint  resolution  (H.  Kea. 
129): 

The  Committee  on  ForeiRii  Affairs,  to  whom  was  referred  Tlouse  joint  resobi- 
tion  129,  to  proniolecoiuiuerciiil  union  with  Canada,  beg  leave  to  Hubuiit  the  fol- 
lowing  report: 

Our  ooiiimf  rcial  relations  with  Canada  have  recenlly  awake-ned  a  deeper  In- 
terest and  reoeivod  a  more  thorough  diHousnion  than  ever  before,  on  botli  Hides 
of  the  iMirder.  The  tendrnoy  of  public  opinion  is  plainly  towards  the  eulurge- 
lucnt  of  trade  Itelweon  th«  two  coiintric^s.  In  Canadn  the  muveinent  has  nd- 
vmieed  from  wliat  was  a  few  years  ago  an  effort  for  partial  reciprocity,  to  a  wide 
expresulon  in  favor  of  unrestricted  intercourse  and  commercial  union.  The  evi- 
dence of  this  fsct  is  al)uiidant. 

The  Uight  Ilonoialile.Ioseph  Chamberlain,  high  commissioner  from  Her  MaJ- 
esty'H  Ooverniiient.  is  reported  to  have  recently  stated  in  a  speech  : 

•■  The  arrangement  Ijetween  the  colonies  and  Great  Britain  isessentially  a  tem- 
porary one.  It  can  not  remain  as  it  is.  *  •  •  Already  you  have  in  Canada, 
th(<  greatest  of  all  the  colonies,  ai\  agitation  for  what  is  called  <-ommercial  union 
with  Ihe  t'nitetl  HIates.  Commercial  union  with  the  United  States  means  unre- 
strieled  trtvle  In'twcen  the  United  Htatesand  the  Dominionof  Canada,  and  a  pro- 
teclivi-  tariff  against  the  mother  country.  If  Canada  desires  that,  Canada  can 
have  It." 

Ar. ,'  speaking  of  the  relation  of  Canada  tothe  United  States  and  Grert  Brttain 
on  »  s.|lMKN)tienl  ocntsioii  the  right  honorable  gentleman  further  said  that — 

"(Vi.uiiiercial  iniion  with  the  United  States  meant  that  ( 'anada  was  to  give 

{iroferencc  lo  every  ariicle  of  manufacture  from  the  United  States  over  mann- 
iiotures  friini  (ireat  Hrllaiii.     If  the  people  of  Canada  desired  an  arrangement 
of  that  kind  he  did  not  doubt  that  they  would  be  able  to  8ec\iro  it." 

Witliin  in  a  few  weeks  a  conference  was  held  at  Quebec  of  the  prime  ministers 
of  all  the  provinces  constituting  the  Dominion  of  Canada,  ntid  after  a  very  full 
exchange  of  views  these  representatives  of  the  executive  powers  of  all  portions 
of  tlie  Dominion  luiHiiiniously  adopted  the  following  declaration  : 

"This  conference,  comprfsitigall  politicil  parties,  is  of  the  opinion  that  a  fair 
measure,  provided  under  proper  conditions,  for  unrestricted  trade  relations  be- 


8 

tween  the  United  States  anrl  the  Ootninion  of  Oaniida,  would  be  of  advantage 
to  all  the  provinces  of  the  Do.ninlon,  and  would,  in  connection  with  an  adjust- 
ment of  the  tishery  df»pute,  tend  to  happily  settle  the  Kiave  dilHoultles  Mrhich 
have  from  time  to  time  arise*  between  U?eat  Britain  and  th»  United  States." 

The  chanibera  of  commerce  and  boardsoftntde  of  the  leading  cities  of  Canada, 
and  more  than  fiftj-  farmers'  institutes  and  conventions,  have  adopted  resolu- 
tions doclarini;  in  favor  of  commercial  union  or  unrestricted  trade  between  the. 
two  countries. 

The  answerinade  by  their  opponents  and  those  most  closely  attnched  to  En- 
Klish  trade  and  EnRlish  rule  has  been  that  the  United  Slates  has  uiven  no  Indica- 
tion that  it  would  rsceiveor  even  consider  any  proposal,  however  friendly  In 
spirit  or  however  favorable  to  us  in  its  terms  it  mi»!;ht  be. 

Tlie  joint  resolution  now  sMbmitted  does  not  contemplate  any  action  on  our 
part  at  present;  but  whenever  the  Dominion  of  Canada  shall  have  declared  a 
desire  for  commercial  union,  with  a  common  taritr,  like  Internal-revenue  taxes, 
like  duties  on  articles  imported  into  either  country  from  abroad,  and  no  duties 
on  trade  between  the  United  states  and  Canada,  then  the  President  is  author- 
ized to  appoint  three  commissioners  to  meet  those  who  may  be  designated  to 
represent  Canada,  in  order  to  prepare  a  plan  for  commercial  union,  l)y  a^simi- 
Inting  the  tariP's  and  internal-revenue  tuxes  of  the  two  countries,  now  not  very 
widely  dill'erent,  and  an  equitable  method  of  dividing:  the  receipts,  which  thcv 
shall  report  to  the  President,  who  shall  lay  it  before  Congress.  The  whole  sub- 
ject of  our  relations  with  Canada  is  kept  ui.der  the  control  of  Congress. 

It  is  notdeemed  necessary  to  here  discuss  the  great  merits  of  commercial  union 
or  the  details  of  arrangement  that  will  be  necessary.  Your  committee  believe 
that  the  power  heroin  conferred  upon  the  President  can  do  no  harm,  that  it  will 
bo  wisely  useJ,  and  will  ;?ad  to  beneficent  results,  promoting  the  independence, 
proipcrity,  and  peace  of  twt,  great  peoples. 

The  committee  therefore  recommend  the  adoption  of  the  joint  resolution. 

March  1,  1889,  thejoint  resolution  vras  take«  up  by  oiianimous  con- 
sent, onkred  to  be  engro.ssefl  and  read  athird  time;  and  being  engrossed, 
it  was  accordingly  r<^d  the  third  time,  and  passed. 


^ 
^~.~ 


